Australia - Future trends

Australia's well rounded economy is likely to see continued
growth in both the near and distant future. The country's
importance as a leading supplier of minerals and agricultural products,
its increasing presence in financial services and specialized technology
industries, and its growing appeal as a tourism destination all hold
great promise. The diversity of the Australian economy, its many trading
partners, and its peaceful democratic political system all help
stabilize economic conditions and encourage new investment. The Asian
financial crisis of the late 1990s slowed Australia's exports,
particularly of minerals, but is unlikely to have any long-term effects
on the overall economy. Australia's economy is a careful balance
of free market policies with close regulation of key economic sectors,
combined with extensive social services programs. Australia's
standard of living is assured of remaining one of the world's
highest.

The Australian economy will have to increasingly address environmental
and Aboriginal issues. Environmental damage caused by mining and
agriculture, especially, have come under frequent media attack. Current
issues include soil erosion caused by overgrazing, urbanization, and
poor farming practices; increases in soil salinity largely due to
farming practices; depletion of fresh water supplies, again largely due
to farming and urbanization; and coastal damage, especially around the
Great Barrier Reef on the Queensland coast, caused by shipping and
extensive tourism. Mining impacts on the environment, such as the
release of toxic substances, tend to be more localized. Mining and
agricultural enterprises are becoming more responsive to environmental
issues, but there is still room for improvement. Australia only
recognized the potential land claims of its Aboriginal population in the
1990s, placing it far behind the political history of indigenous-settler
relations in other countries such as New Zealand, Canada, and the United
States. The
Mabo
and
Wik
High Court decisions of the 1990s recognized that Aboriginal title to
land may still exist and that it can overlap with pastoral and mining
leases. The implications of these decisions have not yet been worked
out. They will probably have no major impact on the Australian economy
as a whole but will give Aboriginal people a greater voice in managing
natural resources on their traditional lands.

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